CM Bhajanlal Sharma announces increase in pension, bonus to farmers

Rajasthan Chief Minister Bhajanlal Sharma on Tuesday announced an increase in social security pension for widows and elderly and bonus to farmers on minimum support price for wheat crop.

Replying to a debate on the motion of thanks to the governor’s speech in the state assembly, he also targeted the previous Congress government over various issues, including law and order and recruitment exam paper leaks, and said the BJP government will fulfil all its poll promises and establish the rule of law in the state.

The chief minister said that a decision has been taken to increase the amount under PM Kisan Samman Nidhi in the state from Rs 6,000 to Rs 8,000 annually in the first phase. This will put an additional financial burden of Rs 1,300 crore on the state.

Sharma said the BJP had promised to give a bonus on the MSP for wheat. In the first phase, a bonus of Rs 125 will be given on wheat, after which its MSP in the state will be increased from Rs 2,275 to Rs 2,400. This will put an additional financial burden of Rs 250 crore on the government.

He said that in order to provide proper social security to the needy persons in the state, it has been decided to increase the monthly security pension from Rs 1,000 to Rs 1,150. This will put an additional burden of Rs 1,800 crore on the state government.

Sharma also said that the displaced families from Pakistan living in the state will be provided housing and other facilities under a special scheme.

The chief minister said that in the previous government decisions were taken based on “appeasement”.

“The state will be run by the Constitution and law, not by appeasement. The present government will leave no stone unturned to establish the rule of law in the peace-loving state.

“Making Rajasthan a crime-free state is the top priority of the state government,” Sharma said, referring to the communal incidents that took place in Karauli, Jhalawar, Udaipur and Jodhpur in the previous Congress regime.

He also hit out at the previous regime over atrocities against women.

“The Congress government dismissed its minister who raised the issue of atrocities against women,” said Sharma, referring to former Congress MLA and minister Rajendra Singh Gudha.

Big update for Rajasthan govt reduce petrol prices

The new Bharatiya Janata Party government in Rajasthan may reduce petrol rates by ₹8-10 per litre and consider cutting diesel prices marginally by reducing value-added tax to fulfil a poll promise made by Prime Minister Narendra Modi, two officials said.

“The state government is expected to review VAT on petrol and diesel after the full cabinet is in place. It will take a view in lines with the Prime Minister’s guarantee to the people of Rajasthan during his Bharatpur rally on November 18,” one of them said, seeking anonymity.

The government will factor in resources before announcing a VAT rate cut as the state already has a debt burden of over ₹5 lakh crore and the new administration has also committed to provide cooking gas for ₹450 per cylinder, he said.

In Bharatpur a month ago, Modi said there was a disparity in petrol prices between Congress-ruled Rajasthan (about ₹109 per litre) and its BJP-ruled neighbours Uttar Pradesh, Gujarat and Haryana (approximately ₹97 per litre). “I’m giving you this assurance that petrol pricing will be reviewed immediately after formation of the BJP government, and as soon as possible, a decision in public interest will be taken,” he had said.

“There is a scope to reduce petrol prices by ₹8-10 per litre, while keeping precarious financial state of Rajasthan in mind. A balance could be made by a token reduction in diesel rate also. But, a review will take place only after the cabinet is formed,” a second official said, declining to be named.

Petrol in state capital Jaipur is sold at ₹108.48 per litre, which costs ₹96.57 a litre in Lucknow in Uttar Pradesh, according to state-run Indian Oil Corporation, India’s largest fuel retailer. It costs ₹96.42 a litre in Ahmedabad and ₹97.18 in Gurugram.

Diesel in Jaipur pumps is sold at ₹ 93.72 per litre, Lucknow ( ₹ 89.76), Ahmedabad ( ₹ 92.17) and Gurugram ( ₹90.05).

Petrol and diesel rates vary because of state levies and other local charges. Pump prices of transport fuels are comparatively higher in Rajasthan because of high VAT and other levies, an executive working for a state-run refiner said, requesting anonymity.

Rajasthan charges 31.04% VAT and ₹1,500 per kilolitre road development cess on petrol, and 19.30% VAT and ₹ 1,750 per kilolitre road development cess on diesel. Comparatively, Uttar Pradesh levies 19.36%, or ₹ 14.85, per litre VAT, whichever is higher, on petrol and 17.08%, or ₹10.41 a litre, whichever is higher, on diesel. VAT on petrol in Gujarat is 13.7% plus 4% cess and VAT on diesel is 14.9% plus 4% cess. In Haryana, the key tax on petrol is 18.2%, or ₹14.50 a litre, whichever is higher; on diesel, it is 16%, or ₹11.86 a litre, whichever is higher.

Two other states, Madhya Pradesh and Chhattisgarh, where BJP has formed new governments, may also review tax rates on petrol and diesel and consider reducing pump rates of the two fuels, the first official said. State governments of Rajasthan, Madhya Pradesh and Chhattisgarh did not respond to emailed queries.

“There is a scope to reduce petrol and diesel prices in these states by reducing VAT,” the official said. Vat on petrol in Chhattisgarh is 24% plus ₹ 2 per litre and on diesel, it is 23% plus ₹ 1 per litre. In Madhya Pradesh, VAT on petrol is 29% plus ₹2.5 a litre plus 1% cess, and on diesel, it is 19% plus ₹ 1.5 per litre VAT and 1% cess.